The terms of a partnership must be honored

4-4-2014 | IslamWeb

Question:

I have bought a property in Pakistan where my uncle worked as a commission agent. We agreed that we will share the profit of property as 50/50. To buy that property I had to take loan from the bank and on that loan I paid interest of nearly £2k plus the currency rate of the british pounds is gone up to 27 rupees (from 155 to 177). Now when we want to sell that property. We are getting more than what we invested but I am getting even less than what I invested in that property. My uncle is asking me the profit from the difference in what we bought this property for. Eventually, this sell is already making me some financial loss + commission of my uncle would make it worst. I would like to know what islam says about this partnership where the investor is already in loss and he has been pressurized to pay commission.

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

What you mentioned of loss, interests, and the decrease of the rupee's value have nothing to do with your uncle. If the property is sold, then he is entitled to what you have agreed upon together. He ventured into this partnership with his effort and work and you ventured with the capital. Therefore, you bear the loss alone and the profits should be divided among you according to your agreement. For more benefit, please refer to Fataawa 10549 and 5160.

On the other hand, you have to repent to Allaah for taking a Riba-based loan which is strongly forbidden in Islam. You should seek forgiveness from Allaah, regret committing that sin, resolve never to do it again, and hasten to clear yourself of the interest loan, especially if the usurious interest would be waived as a result. For more benefit, kindly refer to Fataawa 85749 and 86521.

Allaah Knows best.